Different circumstances can lead to a vacancy. The tenant gives notice; it is necessary to give the tenant notice; there is a legal eviction; different emergency/disasters can happen such as fire, flood, or tornado; there can be the unexpected or unwanted trauma - crime, untimely death, suicide, etc. The reason for a vacancy can impact how long it takes to rent a property.
Every investor and/or property manager wants a zero vacancy period. There are times when everything works perfectly with a qualified tenant ready to move in as the previous tenant moves out. Unfortunately, this does not always happen. To give you some perspective on this subject we put together a checklist of items and projected time it can take to re-rent a property. It may be useful to you in the future when your property is vacant.
No vacancy period, the ideal situation - 0 days
The property is vacated in good condition with zero or minimal repairs
The demand is very high for the rental area in question
The asking rent is right for the area, market, and property condition
Any necessary maintenance does not delay a new tenant move in
Nothing impedes the showing of the property during the notice period
There can be one or many applications for the rental unit but at least one is a qualified applicant ready to move in when the former tenant moves out
Low vacancy period – rents within 10 days
The property is left in reasonable condition but some maintenance may be needed before moving in the new tenant
The demand is reasonable for the rental area in question
The asking rent is comparable to the rental area rents in question
Something may impede showing of the property during the notice period
There can be one or many applications for the rental unit but one is a qualified applicant, accepted shortly after the former tenant moves out
Medium vacancy period –up to 21 days
The property may require repairs prior to a new tenant taking occupancy
The property may have deferred maintenance that requires a vacated unit
The supply of available rental properties is very high for the area
The asking rent may be too high for the competitive market
The property may not show well during the notice period or the current tenant may not cooperate
There can be one or many applications for the rental unit but many are not qualified for the property and it takes more time for a qualified applicant
High vacancy period – more than 21 days
The unit may require extensive maintenance or major improvements prior to a new tenant taking occupancy
Delays in maintenance can extend the vacancy period
There are too many similar properties available in the area
The asking rent may be too high for the area, market, and property
A poor property condition can discourage good applicants
There may be area problems such as drugs, burglaries, bad schools, etc.
There can be one or many applications for the rental unit but it takes a long time to receive one with a qualified applicant
Extreme vacancy period – an undetermined time
There may be an unusual supply of rentals competing with the unit
The asking rent is unreasonably high for the current rental market
The property is in distress due to crime, untimely death, suicide, or other circumstance which discourages any application
How long will your property be vacant? If you have a pending vacancy, we would love to guarantee you a zero vacancy or that we can tell you it won’t take long to rent the property. Unfortunately, we do not have a crystal ball available that will give us an answer.
We are well aware a vacancy affects your bottom line. We also know you can reduce or even eliminate a vacancy period by following landlord/tenant laws (particularly Fair Housing), by asking comparable rents, and by providing well-maintained properties. Remember, having a zero vacancy is not always the answer – instead, waiting for the right tenancy can prevent future problems and/or another unwanted vacancy.
